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Transcripts from the Prime Ministers of Australia

Transcript 16179

Minding Your Money, Seven News Special, Canberra

Photo of Rudd, Kevin

Rudd, Kevin

Period of Service: 03/12/2007 to 24/06/2010

More information about Rudd, Kevin on The National Archive website.

Release Date: 12/10/2008

Release Type: Speech

Transcript ID: 16179

The global financial crisis is affecting financial markets right around the world including Australia.

More than 25 banks around the world have failed or been bailed out. Share markets around the world have suffered large losses.

And the reality is in recent days we have entered a new and damaging stage in the global financial crisis - with real impacts on economic growth and jobs around the world and with real impacts on economic growth and jobs here in Australia as well.

Australia is better placed than almost any other country in the world, to deal with this crisis. We have the best bank regulators in the world. Our banks' balance sheets are strong and healthy. And Australia, unlike most other countries, has a strong budget surplus.

Part of the reason we are in a better position than most is that all year we have been anticipating events and taking practical steps to prepare for them.

That's why I have announced new measures today to continue to maintain the stability of the Australian financial system into the future.

This package includes a guarantee for all bank deposits in Australian banks, credit unions and building societies.

The Government has been working for the last several months on the details of its financial claims scheme for depositors - because depositors haven't had one before.

We have decided to bring in this scheme - to cover all depositors and all deposits without cap - because I don't want to see unnecessary anxiety out there in the Australian community as ordinary Australians watch the bad news unfold on their television screens from overseas each night.

I also want to put our banking arrangements on the same footing as those which now apply in many other countries.

Another measure I have announced today is for the government to guarantee the overseas borrowing arrangements of our banks so that they can secure long term credit to continue to fund business and mortgage lending in Australia into the future.

Other governments have done this with their banks - and with banks in many cases which have very poor credit ratings indeed, relative to Australia's banks. And I don't want to put our banks at a disadvantage for the future.

All this is necessary to help unclog the arteries of the global financial system.

The Government is also concerned about the impact of the global financial crisis on growth and jobs for Australia.

The Government is determined to support the economy into the future by bringing forward our $76 billion nation-building agenda - where, for the first time, the Commonwealth will fund large scale investment in our ports, in our roads, in our rail and in high speed broadband infrastructure for the future.

The Government also remains determined to take other decisive action as necessary to support continued positive economic growth into the future - and to help working families, pensioners and carers deal with the impacts.

This is not just about the national economy; it is just as much about the household economy.

The truth is that what Australia is experiencing is the economic equivalent of a rolling national security crisis.

That means there is going to be a lot of rough weather ahead, and I just want to level with you.

But the Government has set an economic course for the country to see Australia through.

And we remain prepared to take whatever action, whatever action may be necessary to secure this nation's long term economic future.

Good evening.

Transcript 16179